Steel up amid high raw material prices

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    BEIJING- Chinese steel futures rose in early trade on Tuesday, fuelled by strong demand and surging prices for raw materials amid firmer commodity markets.

    The most active construction rebar contract on the Shanghai Futures Exchange, for May delivery, jumped 1.1 percent to 3,918 yuan ($599.41) a ton.

    The January contract for hot-rolled coil, used in the manufacturing sector, gained 0.4 percent to 4,333 yuan a ton.

    “Although consumption has weakened seasonally, it’s still much better than same period in previous years,” Huatai Futures wrote in a note, adding that firm steelmaking ingredient prices left limited room for a drop in the price of steel products.

    Benchmark iron ore futures on the Dalian Commodity Exchange, for May delivery, rose 1.0 percent to 914 yuan a ton.